Investing in Options - The Dedicated Trader

Better Trades Dedicated Trader

Many interested individuals come to BetterTrades with questions about investing in options. Most of those answers may be found in the Education Center of The Dedicated Trader, a thorough source of information created by the people at BetterTrades.

To understand the concept of investing in options, a user could get all the basics covered by reading the material about the subject on The Dedicated Trader. The primary source of information about options in this section of the website is entitled "Learning Options."

The Learning Options material is actually made up of three tutorials. These tutorials cover the history of options, the options players, and options basics. The history section is quite entertaining and explains the ancient origin of options, how they began in America, the Chicago Board of Trade, the Chicago Board Options Exchange, employee stock options, and exchange traded options. In the options players segment, a student will learn about the option exchanges, the financial institutions, the market makers, and the individual investors. The options basics tutorial explains exactly what an option is, explains options expirations, explains long-term options (LEAPS), and gives an example of how an option works.

This section of the site also includes a tool that allows a trader to get an option quote for a stock. It was designed by options investors to cater to the needs of those who buy and sell options. The quotes contain the bid and ask prices, as well as the theoretical value, implied value, time value and all the Greek options like delta, gamma and theta. The information is provided for the calls and puts and allows a trader to easily identify the correct option symbol and strike price. A user can specify the amount of information they want, whether for all options or just for those near the money, and the amount of time they want covered.

In this portion of The Dedicated Trader someone interested in investing in options can get all the information they need to get a good start. Once educated, they can practice and get to work making better trades.